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CNNfn market movers
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July 15, 1999: 2:22 p.m. ET
Efficient Networks surges in 1st day; good earnings boost stocks
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NEW YORK (CNNfn) - Amid a crush of corporate earnings reports Thursday afternoon, investors followed the script perfectly: strong earnings sent stocks up, weak earnings sent them down, and the latest Internet IPO sent shares through the roof.
Stocks across all sectors rose on the strength of better-than-expected earnings reports Thursday, while investors showed little patience for those that couldn't keep pace.
But the day's biggest gains were saved for Efficient Networks, a high-speed digital subscriber line equipment developer that made its market debut at $15 per share. Efficient Networks (EFNT) found the quickest route to prosperity, advancing 31-7/8 to 46-7/8 in its first hours of trading.
A little closer to earth, SanDisk Corp. (SNDK) spun 12-5/16 higher to 66-11/16 after Merrill Lynch upgraded its rating on the computer memory products supplier to a "long-term buy."
Others moving on a ratings upgrade included Integrated Device Technologies Inc. (IDTI), up 1-1/8 to 13-3/16 after Salomon Smith Barney raised the computer chip maker to a "buy" rating.
But most of the day's big gainers moved on the strength of their earnings reports, including Rambus Inc. (RMBS), which rammed its way by analysts' third-quarter earnings predictions by a penny and saw its stock jump 14-1/8 to 111-11/16.
Timberland Co. (TBL) stock hit its stride after the footwear and apparel maker reported second-quarter earnings of 21 cents per share, beating expectations by 4 cents. Investors quickly ran Timberland's stock up 7-7/16 to 72.
Investors likewise accelerated Cummins Engine Co. (CUM) shares 3-3/4 to 60-11/16 after the diesel engine manufacturer posted second-quarter profits of $1.50, well above the $1.21 analysts' had expected.
Traders had fun with shares of Hasbro Inc. (HAS), which climbed 1-7/8 to 28-1/16 after the toy maker posted second-quarter profits of 16 cents per share, 6 cents higher than expected.
And Guidant Corp. (GDT) was hardly winded after climbing 3-13/16 to 59-1/8 on news the cardiac product manufacturer had out-legged second quarter earnings expectations by a penny.
What goes up must come down
However, while investors were quick to boost stocks on positive earnings news, they just as quickly pulled the plug on those who disappointed.
Included among those companies was Cybercash Inc., which saw little cash flowing its way after warning it would lose 53 cents per share during the second quarter, compared to expectations of a 38- cents-per-share loss. That sent Cybercash (CYCH) shares down 2-1/4 to 10-1/2.
W.W. Grainger Inc. (GWW) fell 5-5/16 to 51-11/16 after posting a second-quarter profit of 53 cents per share, compared to the expected 63 cents per share.
Investors were looking to cash out of Capital One Financial (COF) even though the credit card company matched Wall Street's second-quarter earnings expectations of 41 cents per share. Capital One fell 5-5/16 to 47-1/2 in early trading.
And some traders severed ties with wire and cable distributor Anicrom Inc. (ANIC), whose stock fell 1-11/16 to 7-13/16 after announcing it expected second-quarter earnings of 6 cents to 8 cents per share, well below the 16 cents per share analysts expected.
Stamps.com (STMP) didn't report earnings, but investors still affixed the company's stock up 7-5/16 to 40-1/16 after the U.S. Post Office joined forces with the company to help implement computer-generated stamps.
Document management company Merrill Corp. (MRLL) managed to climb 2-15/16 to 20-1/2 after it announced a deal to be acquired by Viking Merger Sub Inc. for $22 per share in cash.
Ziff-Davis Inc. (ZD) had no deal to boost its shares, but it may soon. Shares in the media and marketing company rose 4-1/8 to 18-5/16 after it retained Morgan Stanley Dean Witter as a consultant to consider the possible sale of all or part of the company.
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